Better Collective to acquire Action Network for $240m

Sports betting media firm Better Collective AS has reached ‘definitive terms’ to acquire sports betting publisher the Action Network for a fee of $240 million on a ‘cash and debt-free basis’.

The Stockholm-listed publisher branded the Action Network buyout – its biggest M&A transaction to date – as an essential deal, accelerating and diversifying its US growth strategy by adding the revenue effective assets of Action Pro, Action Labs and Fantasy Labs to its US media portfolio.

Further acquisition benefits will see Better Collective amplify its US wagering editorial and technical provisions by securing Action Network’s ‘original sports news content, premium insights, deep menus of odds and proprietary betting tools and data’.

Following the announcement, Better Collective CEO Jesper Søgaard praised Action Network – which maintains agreements with the likes of BetMGM, DraftKings, FanDuel and PointsBetas a young and dynamic company that had become the ‘most trusted source’ for sports fans in the three years following the federal repeal of PASPA.  

“I am thrilled to welcome Action and its employees to Better Collective,” he noted. “This acquisition, which is the largest in Better Collective’s history, gives us a leading position within affiliation in the US and a strong foundation for profiting from the continuous regulation of the US betting market.

“We add three new, very well positioned US sports media brands to our portfolio and welcome around 100 new colleagues, together representing an invaluable pool of knowledge and expertise on the US sports betting media market. By all accounts, this is a great day for Better Collective.”

However, Better Collective informed that Action Network would be maintained as a separate business unit operating its brands as part of Better Collective US.

Action Network’s day-to-day management will continue to be led by CEO Patrick Keane reporting directly to Better Collective US Chief Executive Marc Pedersen.

Updating stakeholders, Better Collective emphasised Action Network’s rapid growth trajectory as the company is ‘expected to achieve revenues approaching $40 million, an increase of over 100% year-on-year, while also generating positive operational earnings in 2021’.

“I am thrilled about this outcome for our employees and investors and we look forward to continuing to forge great relationships with our league, media and sportsbook partners,” remarked Keane.

“Under Better Collective’s ownership, we become part of a company with many years of experience and all the resources necessary to further grow our position and develop our offering, to ultimately enhance the betting and entertainment experience for sports fans. We gain new colleagues, career paths and perspectives. I’m looking very much forward to the journey ahead.”

The transaction is expected to be completed in the second quarter of 2021, subject to customary regulatory approvals.